File transfer has been one of the most commonly used technologies across the world ever since it became practical to connect computers together with some mode of communication. Companies of all shapes and sizes have relied heavily in the past on this technology for the exchange of file-based information between different IT systems. In spite of the increasing importance of message-oriented middleware and the promises of service-oriented architecture (SOA), data exchange in the modern enterprise uses the simple process of transferring files. Recent government regulations such as HIPAA and Sarbanes-Oxley are calling for every process to be documented, auditable, and accountable, including those business processes that incorporate or leverage FTP. Therefore, it is becoming increasingly important for an organization's strategy to have enhanced file transfer capabilities as part of the overall integration strategy.
File transfer refers to technology provided to allow files to be passed from one application to another, with the other application running either on the same computing platform or on another system entirely. The logic customarily used is that as business applications are driven by files of data, which they process, then a way of linking two parts of the business together is to exchange files data the receiving application can process.
Traditional file transfer implementations generally have used a batch-style process. Information is gathered in one application/location/system and then passed to a different, possibly remote application for processing. For example, in a payroll processing system, time sheet information is gathered from all departments and locations within the company and batched together in data files, which are then transmitted to the corporate mainframe. There they are received and processed by the company payroll application, where payments are scheduled and pay-slip information is generated. This type of facility fulfilled a very basic level of application and system integration. However, it had some severe limitations. A number of these stemmed from the fact that when file transfer technology was created, most of the usage was in a batch style of operations. The new SEC-compliance requirement to Sarbanes-Oxley calls for every process to be documented, auditable, and accountable, including those business processes that incorporate or leverage FTP. It is becoming increasingly important for the organization's strategy to have managed file transfer capabilities as an integral part of overall integration strategy.